Marco Lavagna resigns from INDEC over inflation measurement disagreements

INDEC director Marco Lavagna resigned on Monday due to disagreements with the government over implementing a new methodology for measuring January inflation. Economy Minister Luis Caputo confirmed the change will be postponed and appointed Pedro Lines as replacement. Unions express concerns over potential data manipulation.

Marco Lavagna, director of the National Institute of Statistics and Censuses (INDEC), announced his resignation on Monday, February 2, 2026, to union delegates, citing the government's refusal to publish January inflation data using the new Consumer Price Index (CPI) announced in October 2025. This new CPI is based on the 2017/2018 National Survey of Household Expenditures (ENGHO), giving greater weight to services, housing, and transportation, unlike the 2004 survey used until now.

Economy Minister Luis Caputo admitted in interviews with radios Rivadavia and Mitre that the resignation stems from not implementing the change now, as the disinflation process is not yet consolidated. "Marco was working on the new methodology and had it scheduled for now. With the President, we always thought it should be changed once the disinflation process was consolidated," Caputo said. He estimated January inflation at around 2.5% and stated the new index would yield similar results to the current one. He announced Pedro Lines, an economist with INDEC experience and time in Qatar, as the new director, who agreed to keep the current methodology.

Chief of Staff Manuel Adorni justified the decision on TN: "We had differences in criteria. We were going to have two different indices." Lavagna posted on X a message thanking his team: "A new stage opens."

Unions like ATE, led by Rodolfo Aguiar, raised alarms over the timing of the resignation, eight days before the CPI release on February 10. "It's not casual... it raises doubts about INDEC's future. Workers won't lend themselves to any fiddling with statistics," Aguiar declared. Raúl Llaneza from ATE INDEC compared it to the 2007 intervention under Guillermo Moreno, demanding independence.

This episode recalls past manipulations during Kirchnerism, which distorted indicators and led to judicial convictions. Under Milei, inflation fell from 211% in 2023 to 31.5% in 2025, a key achievement for his administration.

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Illustration of INDEC headquarters in crisis post-Marco Lavagna resignation, with data manipulation accusations against Milei government.
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INDEC crisis after Marco Lavagna's resignation

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Marco Lavagna's resignation as INDEC director has sparked a crisis in Argentina's statistics agency, with accusations of data manipulation to support Javier Milei's government narrative. Analysts draw parallels to Kirchnerist practices, as the administration attempts damage control and plans a new inflation index for August 2026.

Marco Lavagna resigned from directing INDEC after disagreements with the government on implementing the new Consumer Price Index for January. Minister Luis Caputo confirmed the methodological change will be postponed until disinflation is consolidated, appointing Pedro Lines as the new head. January inflation is estimated at 2.5%, according to official projections.

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The Argentine Industrial Union issued a statement after meeting with Economy Minister Luis Caputo, warning of stagnant industrial activity and the loss of over 21,000 jobs in the first nine months of 2025. The manufacturing sector called for fiscal relief, better access to credit, and support for the labor reform under debate in Congress. Industrialists praised macroeconomic stabilization but highlighted challenges to competitiveness in 2026.

President Javier Milei confirmed in an 80-minute interview on 'La Cornisa' that he will not veto the 2026 national budget following its half-sanction in the Chamber of Deputies, stating his government will adjust items via expense reallocation to achieve zero fiscal deficit. Recorded at the Casa Rosada with journalist Luis Majul on December 21, 2025, Milei praised congressional productivity, noted Senate allies' support for the bill without changes, and addressed economic progress, alleged scandals, reforms, and political figures.

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President Javier Milei convened his cabinet to a meeting at the Quinta de Olivos on Monday, including an asado, to assess 2025 management and outline priorities for 2026. The gathering aims to solidify the unity of the renewed team and advance key reforms such as the Inocencia Fiscal law and the 2026 Budget. It highlights internal reorganization and legislative strategy amid economic achievements.

Jaime Alberto Cabal, president of Fenalco, filed a lawsuit with the State Council to temporarily strike down the decree raising the minimum wage by 23% this year. He argues the measure lacks technical backing and violates the legal framework. He warns it could lead to the loss of 772,340 jobs and the closure of numerous small and medium enterprises.

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Following stalled negotiations, Labor Minister Antonio Sanguino confirmed the 2026 minimum wage increase—now incorporating President Gustavo Petro's 'vital minimum wage' for family living costs—will be announced Dec 29-30 and decreed by Dec 31, per ILO standards.

 

 

 

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